Investors switch focus to real estate in Asia

Hong Kong property investors are showing more interest in emerging Asian markets due to slower growth and lower yields in developed markets, according to property consultants. Tourism growth and deregulations on land ownership are boosting the appetites of investors for properties in countries such as Thailand, Malaysia and Singapore.

'Established markets like Australia and the United Kingdom have experienced strong capital growth over the past 10 years. However, capital appreciation in these markets has slowed from that of the mid-late 1990s,' said Ginn Lai, regional director of properties at Colliers International.

'The Asian market at present offers higher yields and growth potential, but with higher risks. Hong Kong investors are quick to speculate on emerging markets and often take calculated risks to be the first mover.'

Mr Lai said about 60 per cent of Colliers' international sales as of the end of last month were concluded for properties in Malaysia and Thailand, while the remaining 40 per cent were for British properties.

Two years ago, the British market accounted for about 90 per cent of Colliers' international sales in Hong Kong, Mr Lai said.

Britain saw prices surge 161 per cent between 1995 and last year, according to research by Knight Frank.